National Revaluation Programme

Phase 2 - REVAL 2017

Topics

• Valuation Office• National Revaluation Programme• Valuation (Amendment) Act 2015• REVAL 2017 & how does it affects your

Rating Authority

Valuation Office• Ireland’s State Valuation organisation since 1830• Provision of a Rateable Valuation services for

assessment of commercial rates• Commercial Rates = €1.4 billion annually• Market Valuation service to Government

departments and agencies• National Revaluation Programme

Context• Valuation Act 2001

• No general revaluation conducted since mid-nineteenth century

• The case for revaluation

• Valuation (Amendment) Act 2015

Why a Revaluation?• Rates = tax based on property rental values• Correctness, Equity and Uniformity– Differential movement in rental values over time– Rental values do not change at the same pace– Restore relativity between properties, categories &

locations based on Net Annual Value (NAV)• Transparency – reflect current market rental

values• Independent and objective outcome• Rolling revaluation: every 5-10 years

Impact on Rates Income of Local Authority?

• It’s about Redistribution of rates liability• Revenue neutral: No impact on first year• Rates Cap (Sec. 56 Valuation Act 2001, as

amended)• Any increase in overall Rates Income limited

to: – Inflation– New developments– Improvements to existing buildings

How Revaluation affects the Rating System

• Before Revaluation: – Rates Liability = RV (in nominal terms) x Annual Rate

on Valuation (ARV)

• After Revaluation:– Rates Liability = NAV x ARV

• Net Annual Value (NAV)– Set by Valuation Office through revaluation every 5-10 years

• Annual Rate on Valuation (ARV)– Set by Local Authority each year

Dublin City Council Example

• Before Revaluation:– RV = €120 x ARV (2012) = 61.19 – Rates = €7,342

• After Revaluation:– NAV = €27,500 x ARV (2015) = 0.2557– Rates = €7,032

Revaluation Outcomes

• Three possibilities:– No change– Decrease– Increase

• Depends on movement of Rental Values relative to rental values of other properties

Revaluation Outcomes so far

SDCC Fingal DLRDublin

City CouncilWaterford Limerick

Valuation Date 2005 2005 2005 2011 2011 2012

Reduced Rates Liability 49% 65% 54% 56% 65% 65%

Increased Rates Liability 39% 30% 46% 41% 32% 32%

No change/Not Previously Rated

12% 5% - 3% 3% 3%

National Revaluation Programme – Phase 1

• Total no. of rateable properties = 146,000

• 55% of entire valuation base in monetary terms now revalued

• Revalued properties = €3.8 billion NAV

• 33% of rateable properties in numerical terms

Valuation (Amendment) Act 2015

• Amends Valuation Act 2001• New measures to accelerate the national

revaluation programme:– Removal of Appeal to Commissioner– “Occupier Assisted Valuation” (new Part 5A)– Outsourcing of valuation work

REVAL 2017 Scope• Scope: Revalue 10 Additional Rating Authorities• Increase revalued base to 70,000 properties

– 67% revalued (monetary)– 48% (numerical)

• Occupier Assisted Valuation (Pilot)– Laois

• Outsourcing (Pilot)– Carlow & Kilkenny

• Direct Assessment– Offaly, Longford, Westmeath, Roscommon, Sligo, Leitrim & Kildare

REVAL 2017

Steps

• Consultation Process– Commissioner writes to Minister for ECLG &

Chief Executive of Rating Authority– Ongoing Liaison between VO & Rating

Authority– Preparatory arrangements

• Commissioner signs Valuation Order• Commissioner appoints Valuation Manager

Statutory Dates

• Valuation Date

• Date of Publication of New Valuation List

• Effective Date for Rates Purposes

Collaborative Approach• Partnerships with rating authorities, representative bodies and

agents

• Joint SCSI/VO Rating Forum

• Providing information to Ratepayers

• Using full range of support channels, including Web

• Adopting standardised processes

• Increasing public understanding of rating valuation system through dialogue with business representatives

• Engaging with peer organisations in other jurisdictions

Collecting & Analysing Information

• Valuation Information Form issues to all occupiers of rateable property

• Historical property data in digital form• Electronic Based Market Analysis: Market

Analysis Unit in VO• ICT–supported valuation process• Valuation Teams conducting field work

Estimating the NAV - Primary Evidence

Key Milestones• Commissioner makes Valuation Order fixing

Valuation Date & appoints Valuation Manager• Collection and analysis of data

– Rent/Lease/Tenure details– Physical property data

• Valuation Manager issues Proposed Valuation Certificates to Ratepayers

• “Representations” to Valuation Manager (40 days)• Final Valuation Certificates issued• New Valuation List for Rating Authority published• Appeals to Valuation Tribunal (within 28 days)• New Valuation List becomes effective

Appeal Process

• “Representations” to Valuation Manager

• Appeal to Valuation Tribunal

• Point of Law - Higher Courts

Valuation Tribunal

• Independent statutory body• Panel of 20+ members• Formal process• Commissioner = Respondent• Appellant = Occupier/Agent for Occupier• Determinations final on valuation matters

www.valoff.ie